Cabinet approves RCS – Modified UDAN with a total outlay of Rs.28,840 crore

The Union Cabinet has approved the launch of the Modified Regional Connectivity Scheme – UDAN for a 10-year period (FY 2026–27 to FY 2035–36), with a total financial outlay of ₹28,840 crore, aimed at deepening air connectivity across underserved regions. 

 Key Features of Modified UDAN

 Expansion of Airport Network

• Development of 100 new airports from existing unserved airstrips
• Focus on improving connectivity to Tier-2 and Tier-3 cities

 Support for Aerodromes

• Financial assistance for Operations & Maintenance (O&M):
  • ₹3.06 crore/year per airport
  • ₹0.90 crore/year per heliport/water aerodrome
• Support limited to 3 years
• Total estimated allocation: ₹2,577 crore for around 441 aerodromes

 Boost to Remote Connectivity

• Development of 200 modern helipads
• Cost: ₹15 crore per helipad
• Total allocation: ₹3,661 crore (over 8 years)
• Target areas:
  • Hilly regions
  • Remote & island locations
  • Aspirational districts
• Objective: Improve last-mile connectivity and emergency response

 Viability Gap Funding (VGF)

• Airlines will receive financial support to operate regional routes
• Enhanced VGF allocation: ₹10,043 crore over 10 years
• Recognises longer gestation needed for route viability

 Fleet Strengthening

• Procurement plan includes:
  • 2 HAL Dhruv helicopters for Pawan Hans
  • 2 HAL Dornier Do-228 aircraft for Alliance Air

 Background: UDAN Scheme

• The original UDAN Scheme was launched in October 2016
• Objective:
  • Make air travel affordable
  • Enhance regional connectivity
  • Promote balanced regional development

Source: PIB